International stock trading could become even more appealing this year, as it is expected that the world’s most valuable startup company will make its Initial Public Offering (IPO) on the Hong Kong Stock Exchange.
Exposing your investment portfolio to international markets can be a smart way to diversify. With the help of a brokerage that deals in international stock markets, you could find that your options grow exponentially, with the potential to invest in some of the world’s fastest growing companies in Europe and Asia.
The Most Valuable Startup You Might Not Have Heard Of
Xiaomi is a Chinese smartphone and gadget producer that was founded just eight years ago. Since then, the company has grown to become one of the largest smartphone manufacturers in the world, with a total valuation of more than $45 billion. In the short amount of time that it has existed, Xiaomi has overtaken LG, Motorola, and Sony, and is worth more than all three companies combined.
Although the company doesn’t always reveal its sales figures, it is estimated that it sells over 92 million smartphones per year. The brand has recently eclipsed Samsung as the mobile leader in India (a key smartphone market), and is now top in sales for South Asia.
Xiaomi doesn’t have a strong presence in the United States, however, a recent announcement will pique the interest of American investors. Xiaomi is in the process of making its IPO, which will see the company listed on the Hong Kong Stock Exchange. This could give international investors a chance to own stock in the fastest growing smartphone company today.
Documents have already been submitted for the IPO, and analysts believe that the initial offer could be valued at $10 billion. When filing documents, it was revealed that the company grew revenue by 70% during 2017, and that operating profit was just under $2 billion.
International Investments Make Sense for Experienced Stockholders
If you’ve already had some experience in the stock market in the United States, then it could be time to start spreading your exposure into another market. The Hong Kong Stock Exchange is the third largest stock exchange in Asia, and it is a primary exchange for the world’s second largest economy.
International stock purchasing can be performed through local brokers, and your current broker may already offer this service. The Xiaomi IPO will no doubt be popular, but it’s not the only stock worth looking at on the Hong Kong Stock Exchange. By researching your international options, you could create a more robust and diverse portfolio, with access to high performing stocks that are otherwise overlooked by the average American investor.
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